Distimo released an interesting report today that examined the overall effects of different app promotions across the iPhone and iPad App Store, as well as the Android Market. One of the most striking stats from the report was that "44% of the iPhone applications that have been on sale lost revenue during the sale, and 23% saw a decline in revenue by more than 20%".
Distimo factored in how much of a price cut each app received, and put it into the above graph. As you might expect, the sharper the price cut, the greater the revenue. The graph shows that, among those that cut their price by 80%, just as many apps lost 20% or more revenue as gained more than 100% revenue. On the whole, putting apps on sale is still a good thing, though; the average iPhone app increased revenue by 22%, iPad apps increased by 19%, and Android app revenue went up by 29%. As you might expect, all three categories see a significant spike on the first day.
The report also examined the effects of having apps being featured. As it turns out, Android apps see a much higher boost in rank from being feature than on the iPhone or iPad. On average, an iPhone app has its rank bumped up 15 spots in the first three days of being featured, while iPad apps go up 27. Android apps? They climb 42 spots, on average. Only 11% of featured iPhone apps climbed more than 50 ranks, compared to 26% of featured Android apps.
Any app developers in the house reconsidering putting their app on sale now? I'm definitely more inclined to do my app shopping when cuts are down at the $0.99 range, but what about you guys?